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I have two jobs and I am 56 yrs old. Is it possible I can max out my 401K for each job, i.e. $ 23,000/- each total $ 46,000/- or only maximum of $ 23,000/- combined from each job. Pls clarify. Thanks Thomas?

Jun 02, 2013 by Thomas from Torrance, CA in  |  Flag
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4 votes

One point to add if other people read this post. Thomas is over the age to add the additional "catch -up" provision and the plan would have to permit catch-up contributions.

The 401(k) contributions limits for 2013 will be as follows: up to $17,500 in elective salary deferrals, plus up to an additional $5,500 in "catch-up contributions" if the 401(k) participant is age 50 or older, and total contributions (employee's salary deferrals plus employer's matching contributions) cannot exceed $51,000.

1 Comment   |  Flag   |  Jun 03, 2013 from Lititz, PA
Jason Hull

Thanks for pointing that out!

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Flag |  Jun 03, 2013 near Fort Worth, TX

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Jason Hull Level 20

Your 401k contribution limit is capped at $23k regardless of how many employers you have. The total of your contributions plus employer contributions is $56,500. If you have two concurrent plans, you're going to be responsible for managing and communicating this since the two (or more) plan owners won't know about each other and you want to make sure that your employer contributions don't wind up putting you over the total threshold. This would happen in an instance where you get a big bonus or profit sharing distribution that is distributed through the corporate 401k program or if your employer happens to just have a generous package.

1 Comment   |  Flag   |  Jun 02, 2013 from Fort Worth, TX
Jason Hull

Here's the link to more info: http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics---401(k)-and-Profit-Sharing-Plan-Contribution-Limits

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Flag |  Jun 02, 2013 near Fort Worth, TX

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Peter C. Karp Level 20

Thomas.

The 401(k) limit applies to all 401(k) accounts you might have for the current year. If you work at two or more jobs or switch jobs in the middle of the year, then you may need to track your 401(k) contributions yourself to ensure that you don't contribute over the limit. For 2013: $17,500 ($23,000 if age 50 or older). To save additional money you may want to consider a Roth IRA as well. As long as you meet the separate eligibility criteria for both a 401(k) and a Roth IRA, you can contribute to both. No restriction exists whereby your participation in one prevents you from saving in the other. You should consult your financial advisor and tax consultant to determine the best options for your specific needs. For a more in depth analysis you are welcome to contact us at 415-345-8185 or email peter@karpcapital.com

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Comment   |  Flag   |  Jun 06, 2013 from San Francisco, CA

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Thomas, If the goal is to increase your tax deferred savings, you could also consider contributing an additional $6500 to an IRA for 2013 ($5500 plus a $1000 over 50 catch-up). Of course if your adjusted gross income is over a certain threshold, which I suspect it may be since you’re otherwise able to save nearly $50,000 a year, you may only be able to contribute to either a Roth IRA or a non-deductible IRA. It all depends on your income and marital status. Consult with a financial planner and your CPA to find out what you’re eligible to do and so that the CPA can file the right form if for a non-deductible IRA.

Comment   |  Flag   |  Jun 04, 2013 from Malvern, PA

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Yes. Thomas the limits are $17,500 with the $5500 catch-up provision. It is your responsibility to not go over that. The limit on total contributions (415c) of employee and employer combined is $51,000.

Comment   |  Flag   |  Jun 10, 2013 from Delray Beach, FL

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